Refinancing a $300,000 mortgage at today’s average rate saves nothing for most homeowners locked in below 6%

Refinancing a $300,000 mortgage at today’s average rate saves nothing for most homeowners locked in below 6%. The average 30-year fixed refinance rate is 6.36% as of April 10, 2026. That rate is higher than what most homeowners already have. As of the third quarter of 2024, 82.8% of homeowners with a mortgage had a rate below 6%. A rule of thumb for refinancing is that a new rate should be at least one percentage point lower than the current rate to justify closing costs. For a homeowner with a 5% mortgage rate, refinancing at 6.36% would increase their rate by 1.36 percentage points. Refinancing makes no financial sense for homeowners with rates below 5.36% given current average rates. Closing costs for a refinance typically range from 2% to 6% of the loan amount. For a $300,000 loan, refinancing costs range from $6,000 to $18,000. Homeowners who refinance at a higher rate and pay thousands in closing costs lose money immediately and over time.